FT News Briefing Monday, July 8
Jul 8, 2019
Iran plans to breach uranium enrichment limits from the 2015 nuclear deal, raising tensions. Greece's center-right party makes a remarkable comeback after elections. Investors are bracing for a possible global recession, adding to market worries. Additionally, Deutsche Bank announces a major overhaul, including 18,000 job cuts and a focus on managing non-performing assets. The restructuring reflects pressures from low profitability and declining stock values, all amid broader geopolitical concerns.
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Deutsche Bank's Struggles
- Deutsche Bank struggled to make its investment bank work after acquiring Bankers Trust in 1999.
- The acquisition yielded some pre-financial crisis profits, but post-crisis regulations and fines created significant problems.
Deutsche Bank's Overhaul
- Deutsche Bank's most significant overhaul involved cutting 18,000 jobs and shifting 74 billion euros of assets into a "capital release unit".
- This move unwinds their two-decade experiment with U.S.-style investment banking.
Signs of Overhaul
- Signs of Deutsche Bank's impending overhaul included low profitability, executive departures, and investor discontent.
- The bank's share price has dropped almost 90% in the last ten years.